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HCS/219 Ratio Analysis

June 19, 2016

HCS/219 Week 2 Ratio Analysis is available for $10 only!

 

Description:-

Resource: Ratio Analysis Data Set

Your manager at the consulting firm suggests that you send Lauren some examples of calculated ratios with explanations of the data. He has provided data for two fictional companies that you can use.

 

STEP 1:  Open the Ratio Analysis data set for the student.  (You need to have access to Excel for this assignment).  Download the Excel spreadsheet to your desktop and then click SAVE.  Close the template and REOPEN the desktop version.

 

Note that at the bottom of the open document you will see 2 tabs.  The Tab 1 is the information from the balance sheet you will use to enter your answers on Tab 2.  You will also see that on Tab 2, I have provided you with the formula to conduct the analysis (shaded green).

 

STEP 2: Compute the ratios for Company A and Company B for the following, using the Excel spreadsheet attached.  Enter your answers on Tab 2 "Student Answers":

  • Current Ratio
  • Quick Ratio
  • Days Cash Available
  • Debt-To-Net-Worth
  • Debt Service Coverage Ratio
  • Operating Margin
  • Return on Equity

 

STEP 3:  Provide a separate comparison in the Blue shaded area of Tab 2 of the ratio results for each company by describing which one has the more favorable result and what this means with respect to overall financial and operational performance.  For example, what is the implication of having a better Quick Ratio? 

Include, based on the overall results, which organization you think is stronger financially and why?

 

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